This report covers the retail sector in the frontier markets of South Asia. Euromonitor International’s definition of the region includes the following countries: Bangladesh, Pakistan and Sri Lanka

Cooking ingredients and meals in Bangladesh in 2025 is marked by price increases across some categories, which have impacted the sales performance of cooking ingredients and meals as a whole. Demand is rising slowly for some categories, with the strongest increase in popularity being most notable in edible oils and sauces, dips and condiments.

In 2024, Bangladesh’s Economic Freedom improved modestly, ranking 116th globally, but corruption and labour market inefficiencies persisted. Business and Financial Freedoms showed gradual gains, with more new businesses and improved banking efficiency. However, high interest rates and a high share of non-performing loans continued to limit investment and credit expansion. Going forward, Bangladesh will need to foster investment and strengthen digital and human capacity.

In 2024, Bangladesh’s real GDP growth slowed to 4.2%, below the regional average, with GDP per capita at USD2,488. In addition, inflation rose to 10.3%, driven by higher costs of transport and household goods. Furthermore, the budget deficit of 4.6% of GDP and a rising public debt-to-GDP ratio highlight fiscal challenges, though the government’s focus on infrastructure and economic services suggests a commitment to long-term growth.

Consumer health in Bangladesh has seen very strong price increases, which dampen demand, as low- and middle-income consumers cannot afford the raised costs. As a result, some low-income consumers have turned to traditional treatments. The rate of inflation rate is high and consumers are cautious over spending. Most consumers have cut down on or eschewed purchases of less essential items to minimise expenditure.

In 2024, couples with children dominated Bangladeshi households, accounting for 58.0% of the total, but this share is predicted to decline to 57.2% by 2029, reflecting a trend towards smaller family units. Single person households are forecast to grow the fastest between 2024 and 2029, by 19.6%, driven by delayed marriage and childbirth. Urbanisation, which is currently lower than the regional average, is projected to increase, with Dhaka leading in population growth, highlighting the need for i

In 2024, Bangladesh ranked 19th in average gross income among Asia Pacific countries, with a significant 4.9% real increase in per capita disposable income. However, income inequality remains high, with the top 10% of households earning 40.7% of total disposable income, and the gender income gap persisting. Over the forecast period, per capita consumer expenditure in the country is expected to grow by 35%, driven by economic reforms and digital banking, but savings per capita are projected to de

Retail current value sales of dairy products and alternatives in Bangladesh are expected to see a marginal decrease over 2025. This is based on a strong drop in retail current value sales of baby food, with only a marginal rise in the main category, dairy. However, this is partly a realignment following fast growth in the previous years of the review period. Meanwhile, retail volume sales are projected to continue to rebound from strong declines in the mid-review period in 2025. The shift to ret

Value sales of snacks in Bangladesh rose in 2025, supported by strong demand among children and young consumers, particularly for small, affordable pack sizes. While prices increased for some products, others maintained their price points by reducing pack size or product quantity. Despite these changes, the overall market remained resilient, with rising product variety and high levels of innovation helping to sustain growth. Budget-friendly formats – typically priced at BDT10, BDT20 or BDT30 – c

Retail volume sales of alcoholic drinks recorded strong growth in 2024 with local consumers embracing alcoholic drinks to a greater degree than their international counterparts. Many international industry players have branches in Bangladesh. Despite the high growth, the industry has been hampered by high inflation, government change and political unrest. Product availability has also been challenging due to import difficulties and customs issues. The government has also been active in illegal t

Tobacco in Bangladesh was affected by a rise in VAT (value-added tax) in January 2025. On prices of cigarettes, the new VAT raised the per stick cost significantly. This price rise may impact the sales performance or see companies enjoy good profits from sales. However, retail volume sales of cigarettes declined in 2024 and companies may find the terrain harder still with higher prices. On the other hand, investment is rising among manufacturers and product variety may widen in 2025.

Sales of beauty and personal care in Bangladesh rose in 2024 in both value terms and volume terms. While underlying demand remained positive, market performance was hindered by rising inflation, political uncertainty, and weakening consumer confidence, particularly in the second half of the year.

Bangladesh’s population is expected to increase because of changes in net migration and natural change. By 2040, there will be 203 million people. The birth rate is anticipated to drop between 2024 and 2040. Young Adults (aged 18-29) will represent the largest portion of the population by 2040. Generational cohorts in Bangladesh will continue to influence consumer expenditure based on their specific purchasing habits and unique demands.

Tissue and hygiene in Bangladesh experienced a mixed performance in 2024, as economic challenges and political instability disrupted business operations. A nationwide shutdown lasting approximately two months significantly impacted commercial activity, limiting sales growth. Despite these challenges, overall demand increased slightly, driven by heightened hygiene awareness and expanding product accessibility across different consumer segments.

In 2024, home care has seen modest growth in demand, with urban areas outperforming rural regions. Hygiene and cleanliness practices have increased, driving higher demand across household, corporate, and commercial sectors, including food service. Low-income consumers, served predominantly by informal retail channels, are emerging as a key market segment. While brand development has been slow, local companies are gaining market share from established leaders like Unilever and R&B, with product v

New manufacturing hubs are driving supply chain diversification efforts. However, these countries still depend on imports of Chinese components, making supply chains longer and more complex. Challenges like insufficient production capacity and lack of supporting industries continue to impede supply chain diversification. Despite this, the situation could improve over the next decade due to large FDI inflows and investments in trade infrastructure.

Although state finances are solid, the collapse of the government has increased political instability and corruption is rife. Economic development has been resilient, but inflation remains high and exports are extremely undiversified. High incomes growth will support the consumer market, but climate change is leading to societal dislocation and poverty is meaningful. Internet use is one of the lowest regionally and innovation capacity is limited, but mobile subscriptions are growing well.

In 2024 demand for staple foods rose once more. This was despite inflation and currency fluctuations as consumer dependency on packaged food has risen with consumers embracing its convenience, especially urban dwellers. Food variety and food habits have changed due to busy lifestyles, changing tastes and increased product availability. The range of staple foods, especially baked goods, significantly increased as distribution widened, with baked goods popular for the purpose of snacking.

Economic pressures, high inflation and political unrest continues to be seen in Bangladesh which is creating instability with imports becoming challenging. Despite this, new product development continues to be seen in hot drinks. Prices stabilised in 2024 despite elevated inflation with foodservice sales also returning to growth. Most consumers depend on small and medium pack sizes due to budgetary constraints with younger generations showing more interest in new tastes and flavours.

Economic pressures, high inflation and political unrest continues to be seen in Bangladesh which is creating instability with imports becoming challenging. As a result, new product development has been limited in soft drinks. Prices stabilised in 2024 despite elevated inflation which helped to sustain demand for soft drinks. There has been a growing dependence on small and medium pack sizes due to budgetary constraints with younger generations showing more interest in new tastes and flavours.

Dhaka is Bangladesh’s most economically vibrant city, due to its population size, consumer expenditure and disposable income. However, Dhaka holds the highest potential for future economic growth in terms of expected GDP growth. Challenges in cities will persist in the near term due to the continuing global economic slowdown and the impact of tight financial conditions. In the longer run, Bangladesh’s cities are set to face burdens on infrastructure, due to large and increasing populations.

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